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This paper develops a two-industry model of R&D. A monopolist supplier sells an intermediate good to an oligopolistic buyer industry where firms compete in quantity and quality-enhancing R&D. The supplier can contribute to downstream product improvements by creating spillover knowledge which...
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This paper studies investment incentives in the steady state of a dynamic bilateral matching market. Because of search … underinvestment on both sides of the market. But when market frictions become negligible, the equilibrium investment levels tend …
Persistent link: https://www.econbiz.de/10003875985
This paper discusses the incentives for innovation when liability is limited or not. Clearly innovative activity … presents empirical results on R&D intensity with respect to sales and to investment into capital. We find that firms with … limited liability undertake more R&D than other firms. The legal form has no impact on capital investment. …
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We analyze both theoretically and empirically how monetary incentives and information about others’ behavior affect dishonesty. We run a laboratory experiment with 560 participants, each of whom observes a number from one to six with there being a payoff associated with each number. They can...
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In a tedious real effort task, subjects know that their piece rate is either low or ten times higher. When subjects are informed about their piece rate realization, they adapt their performance. One third of subjects nevertheless forego this instrumental information when given the choice - and...
Persistent link: https://www.econbiz.de/10011340265